Slide 1: Fiscal Year 2025 Earnings Presentation
, PURE CYCLE CORPORATION FISCAL YEAR 2025 EARNINGS PRESENTATION - - Presented By : MARK HAIRDING
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT Statements that are not historical tacts contained or incorporated by reference in this presentation are "forward- looking statements" ("FLS"} within the meaning of the Private Securities Litigation Reform Act of 1995, Secti on 27A of the Securities Act of 1933 and Secti on
Slide 3: Management Team
MARK W. HARDING MARC SPEZIALY RACHELLE BRENT BEAUDRY BROUILLARD DIRK LASHNITS President, CEO, and Director VP, CFO, Principal Accounting Vice President, Engineering Head of Marketing Vice President, Land Development Officer, Principal Financial Officer Mark is an exceptional leader who has Marc brin
Slide 4: Board of Directors
BOARD OF DIRECTORS Mark W. Harding Jeffrey G. Sheets Frederick A. Fendel III President and CEO Director Director Patrick J. Beirne Susan D. Heitmann Director and Chair of the Audit Chair of the Board Committee Wanda J. Abel Daniel R. Kozlowski Director and Chair of the Nominating Director and Chair
Slide 5: Investment Snapshot
INVESTMENT SNAPSHOT 25 Straight Profitable Recurring Revenue Base Quarters Pure Cycle has posted net income for six Stable earnings from water and wastewater consecutive years, demonstrating a durable utilities, rental income, and service fees and resilient earnings model. underwrite financial predi
Slide 6: Consolidated Metrics: Q4 Revenue and Gross Profit
CONSOLIDATED METRICS 4 th Quarter Results In Q4 2025, we reported revenue of $11.2M and gross profit of $7.6M. The decline compared to Q4 2024 was primarily due to the timing in our lot sales revenue compared to 2024 specifically the timing of finished lot deliveries. QoQ Q4 Revenue QoQ Q4 Gross Pro
Slide 7: Consolidated Metrics: Q4 Net Income and EPS
CONSOLIDATED METRICS 4 th Quarter Results In Q4 2025 we generated net income of $6.1M and EPS of $0.25. The decrease from prior quarters is due to the timing in our lot sales revenue and offset by higher tap sales and royalty income which highlights the strength of our earnings through our diverse a
Slide 8: Consolidated Metrics: FY 2025 Revenue and Gross Profit
CONSOLIDATED METRICS FY 2025 RESULTS We have achieved $26.1M in revenue and $16.0M in gross profit. Revenues in the fourth quarter are reflective of the finished lot status in Phase 2C. REVENUE GROSS PROFIT Actual to Date Actual to Date $28,747 $19,759 $26,087 $16,030 2024 2025 2024 2025 PURE CYCLE
Slide 9: Consolidated Metrics: FY 2025 Net Income and EPS
CONSOLIDATED METRICS FY 2025 RESULTS Net income totaled $13.1M, surpassing our full-year guidance of $12.54M, while earnings per share reached $0.54. Notably, net income was positively impacted by O&G royalty income. NET INCOME EPS Actual to Date Actual to Date 12.54M Forecasted $0.52 Forecasted $13
Slide 10: Earnings Bridge
EARNINGS BRIDGE FY2025 net income exceeded forecast by approximately $0.6 million, driven by stronger recurring performance across water utilities and higher oil & gas royalties. While land development activity contributed less than expected, consistent water margins and stable cost control helped m
Slide 11: Water Utilities
Water Utilities
Slide 12: Water & Wastewater Performance
WATER & WASTEWATER DOMESTIC PERFORMANCE Base utility fees and service charges add steady income, smoothing quarterly earnings volatility INDUSTRIAL Industrial water sales to oil & gas operations generate incremental, high-margin income tied to drilling and fracking, further strengthening the return
Slide 13: Capacity and Production
CAPACITY AND PRODUCTION PORTFOLIO CAPACITY Acre Feet Production FY 2025 At Buildout Current Remaining Capacity Sold To Date 2.2% 100% 80% 2359 95.5% 4.5% 60% 40% 635 2.3% 20% 0% AF Used AF Available We estimate our portfolio can serve approximately 60,000 We continue to invest in our systems with a
Slide 14: Water Revenue
CONSOLIDATED METRICS WATER REVENUE FY2025 water revenues show a shift toward recurring water and wastewater income as tap fee activity accelerated with continued development at Sky Ranch. O&G revenues declined from FY2024 highs but remain a meaningful contributor. Customer growth trends point to acc
Slide 15: We Provide Raw Water to O&G Operators for Drilling
WE PROVIDE RAW WATER TO O&G OPERATORS FOR DRILLING Our existing infrastructure enables us to supply water to O&G operators, while ongoing strategic investments enhance our capacity to deliver water where and when it’s needed. Oil and Gas Water Sales by Quarter $6,000 (in 000s) $5,550 $5,000 > 150
Slide 16: Land Development
Land Development
Slide 17: Land Development
LAND DEVELOPMENT Phase 2C: 228 Lots: 82% FY2025 Lot Sales: $13.6M lot complete by FY2025; $16.5M revenue from Sky Ranch, milestone payments received, compared to $16M prior-year, ~$811K remaining for FY26. reflecting builder timing shifts. Phase 2D: 204 Lots: 43% Visibility into FY26: Revenue comple
Slide 18: Land Development Revenue
LAND DEVELOPMENT REVENUE FY2025 land development revenue remains strong at $15.3 million, following a record FY2024 driven by Phase 2 B & C activity. The majority of FY2025 lot revenue stems from Phase 2C, which represents over 70% of total lot contributions, while minimal revenue remains from prior
Slide 19: Phases 2A-2D Lots and Expected Revenue
PHASE 2A PHASE 2B 229 Lots 211 Lots +$18.4M Lot Revenue +$17.3M Lot Revenue +$6.3M Taps Fees +$9.5M Taps Fees +$420K/yr SFR Rents +$930K/yr SFR Rents +$343K/yr W/WW Sales +$316K/yr W/WW Sales 2A 2B 2C 2D PHASE 2C PHASE 2D 228 Lots 204 Lots +$17.3M Lot Revenue +$20.4M Lot Revenue +$6.6M Taps Fees +$8
Slide 20: Land Development Timeline
LAND DEVELOPMENT TIMELINE Our land development continues to advance on schedule across Phases 2C through 2E. Phase 2C is now complete, Phase 2D is well underway with wet utilities finishing in early fiscal 2026, and Phase 2E is entering the entitlement and utility installation phase, setting up cont
Slide 21: Phase 2E
PHASE 2E 148 Lots This phase will add an estimated • $14M Lot Revenue • $4.3M Taps Fees • $300K/yr SFR Rents • $225K/yr W/WW Sales PURE CYCLE CORPORATION PAGE 21
Slide 22: Groundbreaking on High School
GROUNDBREAKING ON HIGH SCHOOL PURE CYCLE CORPORATION PAGE Pg. 2222
Slide 23: Development Encroachment To Lowry Ranch
Development Encroachment To Lowry Ranch Lowry Ranch Service Area PURE CYCLE CORPORATION PAGE Pg. 2323
Slide 24: Single-Family Rentals
Single-Family Rentals
Slide 25: Segment Performance – Single-Family Rentals
Segment Performance – E Single-Family Rentals • 14 Homes Completed - Rental units built at Sky Ranch now fully leased, generating stable recurring income. A B • 40 Additional Homes Under Contract - Next phase of single-family rentals progressing, with occupancy expected through FY2026. • Steady Rent
Slide 26: Single-Family Rentals
SINGLE-FAMILY RENTALS Rental income continues to grow steadily, increasing from $165K in FY2023 to nearly $500K in FY2025 as additional homes are completed and leased. The portfolio continues to demonstrate strong asset appreciation, with fair market value exceeding net book value and providing both
Slide 27: SFR Portfolio
SFR Portfolio 95 Homes 105 Homes $3.1M Rent/Yr $37.2M Assets Sky Ranch Phase 1 & 2 $2.9M Rent/Yr $57M FMV $33.7M Assets $52.5M FMV 10 71 Homes $2.1M Rent/Yr $25.3M Assets 24 Added in Phase Prior Phases $37.3M FMV 31 Homes 40 $930K Rent/Yr 95 $11.3M Assets 14 Homes $16.3M FMV 71 $420K Rent/Yr 4 Homes
Slide 28: Capital Allocation & Shareholder Value
Capital Allocation & Shareholder Value
Slide 29: Strong Balance Sheet
STRONG BALANCE SHEET $67.5M Total Assets $9.9M Total Assets $5.2M Total Assets $65.4M Total Liquidity $9.0M in Wastewater Systems $7.4M of Land for Development $7.2M in Fair Market Value $28.4M in Cash and Restricted $31.8M Water Rights Portfolio $2.4M developed land for sale $43.8M in Receivable f
Slide 30: Capital Allocation
Capital Allocation FY 25 Capital Allocation Mix (000s) Cash & Investments: $21.9 M Strong Balance Sheet CAB Receivable: $43.8 M @ 6% interest $397 Liquidity to fund next phases $9,652 Sky Ranch infrastructure & water systems Growth Investment Single-Family Rental portfolio expansion Long-term land d
Slide 31: Stock Repurchase Program Update
Stock Repurchase Program Update Maximum Number of Shares that Total Number of Average Price Paid per Fiscal Period May Yet Be Purchased Under the The Company continues to invest in itself, Shares Purchased Share Plans or Programs through its approved stock repurchase program. We believe our shares r
Slide 32: Recurring Revenue Strength
Recurring Revenue Strength Utilities Revenue Stability: Recurring Rental Income from 14 Homes: Fully Diversified Earnings Mix: Blending SFR Synergy with Land Development: water and wastewater revenue offer leased homes generating monthly regulated utility income with Rental strategy monetizes lots c
Slide 33: Shareholder Value
Shareholder Value Pure Cycle has shown consistent growth in both recurring revenue (with contributions from water services and an increasing SFR component) and total assets over recent years, suggesting a strong financial position for continued expansion and growing returns on investments. Annual Re
Slide 34: Profitability Trends
PROFITABILITY TRENDS Water Taps & O&G Land Development Recurring Revenue $60,000 $6,000 PROJECTED Water Taps/O&G/Land Development Revenue $5,174 $50,000 $5,000 $40,000 $4,000 Recurring Revenue $43,063 $30,000 $2,214 $2,554 $2,703 $3,000 $20,000 $2,000 $1,383 $17,599 $16,682 $15,257 $10,000 $7,565 $1
Slide 35: Valuation Sensitivity Scenarios
Valuation Sensitivity Scenarios FY26 Gross Revenue: $26–30M Range: Scenario modeling based on timing of Phase 2D/2E milestone completions and builder uptake. FY26 EPS Sensitivity: $0.43–$0.52: EPS estimates vary with lot closings pace and rental unit lease-up timing. Upside in Timing Acceleration: I
Slide 36: Short-Term Outlook (3–5 Years)
Short-Term Outlook (3–5 Years) • Water Utilities: Customer base expected to grow to ~2,500 accounts with consistent tap sales across remaining Sky Ranch phases. Base utility fees and service charges continue to provide predictable, recurring revenue, with annual tap fee increases of ~3%. • Land Deve
Slide 37: Long-Term Outlook (Sky Ranch Buildout & Beyond)
Long-Term Outlook (Sky Ranch Buildout & Beyond) •Water Utilities: Buildout to ~5,000 total connections at Sky Ranch and expansion into adjacent service areas (e.g., Lowry Ranch, Arapahoe County parcels). Continued investment in infrastructure enhances recurring revenue streams and long- term shareho
Slide 38: Sky Ranch
SKY RANCH PURE CYCLE CORPORATION APPENDIX PAGE 1
Slide 39: Earnings Presentation Q&A
PURE CYCLE CORPORATION Earnings Presentation Q&A www.purecyclewater.com